The launch of TikTok Shop in Germany is the first step towards a more global upheaval in European commerce. This article explains why TikTok Shop poses a strategic threat to retail.
TikTok got Generation Z hooked on “short formats.” The revolution is about to be repeated, but this time, e-commerce and retail are concerned. TikTok Shop is coming to the European Union. The first stage of the roll-out is Germany, and in this article, I look at the changes that await us. We could be on the cusp of massive changes in the competitive landscape, of which Temu and Shein were only the harbingers. The threat to European retailers is real. I will explain it all in this article.
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TikTok shop: figures and statistics
- 9 billion: TikTok Shop’s US sales in 2024.
- 58%: share of TikTok Shop sales generated by video-integrated purchases.
- 740 billion: live-stream shopping sales in China, representing 1/3 of Chinese e-commerce.
- 2.1 million: revenue generated by Canvas Beauty Brand in a single live stream on TikTok.
Germany: 1st stage in the deployment of TikTok Shop in the EU
TikTok Shop was launched in the USA in September 2023. In March 2025, this e-commerce platform will take its first steps in Europe, launching in Germany.
This launch will seriously alter consumer habits if we look at what is happening in the USA. Across the Atlantic, TikTok Shop has already generated $9 billion in sales. This is proof that consumers have massively adopted it. And, of course, it also means that the incumbent market players have seen their market share shrink. In Germany, the most powerful e-commerce player is Otto.de, with sales of 6.5 billion euros.
TikTok Shop’s strength lies in transforming user engagement into impulse purchases. Products are directly integrated into the content consumed, making the shopping experience smoother and easier. The customer journey has improved, and the friction between the Internet user and the act of purchasing is eliminated.
TikTok Shop’s strength lies in transforming user engagement into impulse purchases.
Innovative formats: videos and live shopping
TikTok’s e-commerce success is based on 2 innovative sales formats.
Integration of purchases in short videos
TikTokers can include a button in their videos that takes you directly to a sales page to place a 1-click order. The customer journey is thus optimized to the maximum, with only 2 clicks between the intention to buy and placing the order. This optimization of the customer experience is formidable because it puts platform users at the mercy of their buying impulses.
Live-stream shopping
Here, innovation lies more in the format. Have you heard of teleshopping? Its replacement is live video shopping, which accounts for $740 billion in annual sales in China. Some Chinese e-tailers have even created avatars that work 24/7. TikTok is an example of this sales channel type, creating a close relationship with consumers. Here again, e-tailers seek to provoke impulse purchases. Some brands enjoy incredible success with live sales that can bring in millions of euros. For example, a brand like Canvas Beauty conducted a single live sales session and generated sales worth 2.2 million euros.
Even giants like Alibaba and JD.com can no longer defend their market share.
Watch out for other Chinese competitors
The arrival of TikTok Shop should be seen as the harbinger of a bigger wave to hit retail: that of Chinese e-commerce. You probably don’t know them yet, but players like Kuaishou and Pinduoduo are also eyeing Europe. Temu is a subsidiary of Pinduoduo.
On the one hand, their marketing strategies are formidable. Some are inspired by online gambling to maximize engagement and get consumers to buy. The line between impulse buying and addiction is slowly disappearing. The impact on consumer behavior is such that even giants like Alibaba and JD.com can no longer defend their market share. Just imagine what could happen in Europe.
On the other hand, platforms are starting to market their products. This is nothing new since Amazon already has a line of products called “Amazon Basics.” But we’re entering a new era with Chinese platforms. Platforms are launching truly independent brands that are no longer simply product lines, as Amazon had been doing. Take Shein, for example, which has launched Sheglam. It’s a cosmetics brand with an estimated potential of 2 billion euros.
Conclusion
TikTok Shop’s arrival in Germany seems an important event for general retail and e-commerce. Indeed, this platform has significant disruptive potential. Consumer behavior could be affected without regulation, and impulse buying mechanisms could be triggered. This would affect the market share of incumbent players in national markets and further amplify logistics flows from China to Europe. As a reminder, a brand like Temu already accounts for 200,000 to 300,000 parcels arriving in Germany daily.
In the long term, TikTok Shop is just the tip of the iceberg. Chinese e-commerce represents a much greater threat, as many other players could follow and weaken the competitive positions of local players.
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